Feb 24, 2021
Two types of SBA loans: 504 and 7a
Though CDC/504 loans tend to be conflated with real estate, they
are really designed for anything that you log under “property,
plant, and equipment.” This means you can use them for purchasing
or renovating commercial real estate or for purchasing
equipment.
These are some eligible uses for SBA 504 loans:
The purchase of existing buildings
The purchase of land and land improvements, including grading,
street improvements, utilities, parking lots and landscaping
The construction of new facilities or modernizing, renovating, or
converting existing facilities
The refinancing of debt in connection with an expansion of the
business through new or renovated facilities
The purchase or upgrade of equipment and machinery
You can’t use an SBA CDC/504 loan to refinance pre-existing debt or
for working capital, so if you’re looking for a more versatile
loan, then consider the SBA 7(a) loan program.
While you can choose to earmark funds toward purchasing land or
buildings, you can also use a 7(a) loan for business renovations,
building out a leased property, capital expenditures like meeting
payroll expenses, and to help with everyday operating costs.
The funds from an SBA 7(a) loan can be put toward any of the
following uses:
Expand, acquire, or start a business
Purchase or construct real estate
Refinance existing business debt
Buy equipment
Provide working capital
Construct leasehold improvements
Purchase inventory
Working capital
If you'd like to meet with Beau to talk financing, book a
call here
( http://bookwithbeau.com/ )